Chapter 4.6- The extended marketing mix of 7 P’s

What does the Marketing mix of (People) refer to?

It refers to the employees and managers of a business and how they relate to customers and communicate with them. The people employed by a business- especially service businesses where customers cannot judge a company by the attributes of physical products- can either give a competitive advantage or lead to poor customer reaction and disloyal customers. Poor customer experience can be posted on social media and soon the entire world knows about it

Why is PEOPLE so important in retail stores?

Customers make judgements about service provision and delivery based on the people representing the organization. This is becuase people are one of the few elements of the service that customers can see and interact with

– Excellent customer service personnel who can provide support with clearly known expectations, such as hours of operation and average response time, is key to maintaining a high level of customer satisfaction

Why is PEOPLE so important ONLINE

They are important because when they employ people that genuinly beleive in the products or services that the online business sells then it is more likely that they will perform the best they can. In addition, they are more likely to give honest feedback and input into the types of products the business is producing or selling

How is customer loyalty achieved through PEOPLE

It is achieved through employing well- trained, confident and well-motivated employees who deal with customers in an efficient and speedy manner.

What does the Marketing mix of (Process) refer to?

Refers to the procedures and policies that are put into place to provide the service or the product to the consumer.

– In other words it can be the system used to deliver the products or services

– The speed and efficiency of service delivery are determined by the “process” that has been put into place

– The “Process” has to be very efficient becuase it will avoid any delays in providing the service and promote a consistent customer experience.

-Customers demand short waiting time, quality information and the helpfullness and knowledge of employees and these should be met if the process is effective

What is the importance of changing process

-Process must CHANGE to remain COMPETITIVE. Online platforms/shopping offers customers a much quicker and more conveinient ordering/payment/delivery process that traditional shoppings

-IF companies dont embrace this their process becomes outdated

What does the Marketing mix of (Physical evidence) refer to?

It refers to the ways in which the business and its products are presented to its customers

– Where the service is being delivered from, such as the location, and the appearance and state of repair/decoration of retail shops.

– This part of the marketing mix can help distinguish a company from its competitors

– Physical evidence may be used to charge a premium price for its products and services and establish a positive customer experience

– Physical evidence can refer to the appearance of employees and how they dress and act

What are services?

They are intangible products: A non physical product-service-provided to a customer such as an insurance policy or a car repair

What are Products

They are tangible products where a physical object that can be touched such as a building, car, tablet, computer, or clothing

Give an example of Physical evidence

-For instance the value for money that is given for a plane ticket. If the customer paid a high price for it, it is likely that they would be expecting something that is rather attracting them.

– Company vehicles

– Customers use more than their sight to come up with their opinions. They use the smell as well.